The 60% tax trap
Apparently, over half a million taxpayers paid a marginal tax rate of 60% in 2022/23! This 60% tax rate does not appear in tax tables though. For 2024/25 taxpayers in England, the rates shown on the HMRC website are: Band Taxable income Tax rate Personal Allowance Up to £12,570 0% Basic rate £12,570 to £50,270 […]
Employment Rights Bill 2024
Significant changes proposed to workers’ rights. The government published the Employment Rights Bill in October, which is intended to help deliver economic security and growth to businesses, workers and communities across the UK. The bill will bring forward 28 individual employment reforms, from ending exploitative zero hours contracts and fire and rehire practices to establishing […]
How much repetitive manual input is there into your accounting records?
Getting information into the accounting records can be done in a variety of ways. Things have moved on over the years with the advent of IT. In the “good old days” this was often laborious and time consuming and prone to error. Nowadays it can be as simple as uploading an electronic invoice and all […]
Cash basis or accruals basis?
From April 2024, cash basis accounting, where income or costs are recorded at the date the money is either received or paid out, is the HMRC recognised default accounting method for self-employed businesses and partnerships with trading income. Accruals method can be used but a box needs to be ticked on the tax return. […]
Autumn 2024 Budget speech: History in the making?
Good news for workers, but not so much for businesses On October 30 2024, Rachel Reeves delivered her first Budget speech. As the first Budget speech ever delivered by a female Chancellor of the Exchequer, the occasion was bound to be one for the history books regardless of what was said. The Chancellor’s speech lasted […]
HMRC Anti-avoidance campaigns
HMRC is keen to close the “tax gap”, and one of their “tactics” is direct letters to individuals they suspect of having received income from certain sources. The latest is to those suspected of generating income from selling or breeding of animals – particularly dogs and cats – where this has not been disclosed to […]
Resetting your approach after a break
How do you reset at work after a break or a quieter summer period? Resetting at work after a break or a quieter summer period is crucial for regaining productivity and focus. The process begins with getting organised and prioritising tasks. Reviewing upcoming projects, deadlines, and emails allows you to assess what requires immediate attention. […]
Are you paying at least the National Minimum Wage (NMW)?
HMRC is cracking down on small and medium-sized businesses in certain regions of the UK for potential non-compliance with the NMW regulations. Companies found guilty will have to reimburse workers for arrears and can be publicly “named and shamed”. Earlier this year, over 500 businesses were listed on the HMRC website, and some of these […]
Balancing long-term and short-term strategies
You can’t grow-long term if you can’t eat in the short-term. Any successful business has to balance two different time horizons -long and short-term. In the short term, a business needs to cover its costs, pay salaries and function on a day-to-day basis. However, if it focuses too much on the present, there is a […]
Do parents pay tax on their children’s savings?
If you’re a parent and want to put some money into your child’s savings account, there are some strict rules in place to stop you using their tax-free allowances as a way of cutting down your own tax bill. If the interest on the savings you put into your child’s savings account exceeds £100 a […]